Furniture industry and sustainability: Innovation and responsible supply chain management are on the rise

The Italian furniture supply chain is strengthening its sustainability strategies and demonstrating greater maturity in managing transparency, accountability, regulatory compliance, and the adoption of ESG certifications. There is growing momentum toward innovation and responsible supply chain management to ensure oversight across the entire value chain - contributing to the reduction of environmental and social impacts and enhancing the economic resilience of companies within the global competitive landscape.

These are the main insights from the Monitor for Furniture Pact 2025 Report, presented yesterday and promoted by the Sustainability Lab at SDA Bocconi School of Management. The Monitor serves as a benchmark for analyzing the evolution of sustainability in the furniture supply chain and supporting companies in adopting more responsible and positive-impact management models.

The Monitor focuses on leading companies and other key players across the supply chain, including manufacturers of panels for the furniture industry, producers of decorative and functional papers, machinery for wood processing, as well as furniture, home décor, and ceramic product designers and manufacturers. The participating companies, both publicly listed and private, are mainly located in Northern and Central Italy, with an average turnover of approximately €335 million in 2023 and an average of 1,280 employees.

The ESG performance assessment methodology developed by the SDA Bocconi Sustainability Lab for the Furniture Pact Monitor has been tested on a panel of over 2,000 leading companies in their respective markets, using a data-driven approach rooted in industry best practices.

The 2025 Report, presented by Stefania Carraro, Operating Director of the Monitor (Valentino D’Angelo and Mario Gervasini complete the research team), highlights a more structured approach to corporate strategies in terms of transparency and accountability, regulatory compliance, and the adoption of ESG certifications. These are clear signs of an ongoing transformation - moving beyond mere regulatory compliance to become a distinctive element of competitiveness within the sector.

“The 2025 Report of the Furniture Pact Monitor reveals significant progress, but it is crucial to consolidate these advances and make them structural. European regulatory compliance is accelerating the adoption of more innovative models, and the Omnibus Regulation could mark a turning point if it successfully balances administrative simplification with maintaining sustainability standards - thus contributing to a more efficient and competitive development model,” commented Francesco Perrini, Associate Dean for Sustainability at SDA Bocconi and Scientific Director of the Furniture Pact. “Circular economy, decarbonization, and double materiality are emerging as fundamental elements for the sector, with companies adopting more advanced metrics to reduce emissions and improve environmental impact. However, a solid governance framework and targeted investments across the supply chain remain essential.”

Serena Morricone, Associate Professor of Practice in Financial Accounting & Analysis, examined the opportunities and challenges presented by the VSME standards—a voluntary reporting framework developed by the European Financial Reporting Advisory Group (EFRAG) for micro, small, and medium-sized enterprises (SMEs).

SDA Bocconi School of Management